tv Trending Business Bloomberg June 10, 2015 10:00pm-11:01pm EDT
increased confidence has led to increased hiring. angela merkel showing signs of a softer side. showing -- considering releasing payments to greece if they undertake just one of the reforms. let us know what you think about the top stories. the bank of korea lowering rates to record 1.5%. economists saw that coming. with falling exports and mers threatening recovery, we are tracking the central bank action. reporter: we are hearing reports from the bank of korea, after cutting the interest rate to a fresh record, 1.5%.
we are talking about mers. the bank of korea saying the recovery has contracted because of the mers outbreak. domestic demand uncertain. uncertainties have been heightened. we have talked about five straight losses. five straight months of loss in terms of losses in terms of exports. the yuan strengthening against the yen to a seven-year high. they arenditions -- continuing to track the -- they say the export decline has accelerated recently and they will watch major countries and their monetary policy shifts.
we talk about the rave across asia-pacific. also saying they are going to be watching domestic household debt. quite a number of outflows as well. inflation to remain low. may, the the month of lowest we have seen since the asian financial crisis. the greek debt has shifted. tot is one of the risks global growth. they will see the slowdown across the globe. futurek continuing their policy, which is economic growth and price and financial stability. i want to end with new zealand as well, cutting rates. the governor talking about how they are going to be adjusting things down in terms of the key
we dollar. he said it remained overvalued. more cuts. falling milk prices, oil prices. for straight years. belowe seen it held wheelers target. the shod -- rishaad: we want your thoughts. australian dollar is higher. unemployment falling to 6%. we can head to the new zealand and austria editor. way more than anticipated. what does that tell us? reporter: it shows there is perhaps some impact on hiring
intentions. it underlines the delicate balance the governor has on his hands. on one hand, trying to help out the parts of the economy that are struggling. set against that, strong housing market in sydney. some of the things going on in sydney are crazy. is now signs employment picking up. the question is whether he has scope for another cut. he thinks it is possible that they could cut later. but data lake this makes his job harder. a saw it reflected in stronger reaction on the australian dollar. there have been a few pressure marks from statisticians. it has jumped around a lot. a weaker runollows in the previous months.
there probably will be one or two questions about how much we can trust the data. there are aid note few anomalies in the western australian data. that is something that needs to be looked at. going forward, might have some sort of mitigating impact on the market reaction. to sum up, we are still in data watching mode with regard to the rba. this does not discount another rate cut should the data continue to be weak. on the other hand, i chose the australian economy is not as weak as someone suggest. thank you very much, james. the latest employment re port in austria. reporter: the australian dollar surged after the report. i'd one point, it touched 77.93. it is now at 7758.
australian at stocks, they are following global peers. , of 1.2%.in miners asian stocks rising for another day. fueling stocks this morning, rate cuts in south korea and new zealand. now rising 0.5%. cutting their rates. also, weakening currencies weakening their exports per ribbon new zealand rate cut was the first one in almost four years. another cut could be coming. reversingai composite earlier gains, now down 1%.
we are expecting economic data out this afternoon. concerns seem to be growing ipo. next week's sengung saying -- hen gaining. we have seen the the nikkei following -- falling. the yen's surging. even after the comments, the yen is unlikely to weaken further. theei jumping all across board, up 1.4%. shod -- rishaad: back to you. reporter: let's start out with greece.
this wrapped up in brussels overnight. asks were described constructive. angela merkel emphasizing that the objective is to keep greece within the euro area. there has been speculation that germany is considering signing called a rescue payment if greece agrees to one reform. denied thaton report. meanwhile, s&p, let me get you the statement. saying the debt rating, if no deal is struck, the country will likely not have to meet external obligations. and other words, the fall. good news, ecb is raising the amount of emergency cash available.
need the cash.do you look at how reliant on how the banks have come. this comes as savings continue to dwindle. let's switch gears and talk about ai ib. how big of a game changer is it? larry summers, the former u.s. treasury boss, said because they have gained support, the u.s. is role as the sole underwriter of the u.s. economy. he says the u.s. has not had that kind of influence for a long time, anyway. larry is a great intellectual. as a columnist, he says things in an extreme way. sole.s. has not been the underwriter. not -- let'sed did
switch and talk about deals. spotify recently closed their latest round of financing. $500$509 secured -- million secured. betting the streaming is the present and future of music. the value of spotify is $8.5 billion. it is worth noting there is more in the war chest to fend off apple's offensive. the question for investors is, do you back? spotify, the first mover? tim cook? or jay-z. moreonsumers, there is choice. apple detailed the music this free which launches for initially. after time, both services will charge $10 to give you access to
an official trip to the u.s. postponed because of about rake of middle east respiratory syndrome. the government has been criticized for its response to the outbreak which has killed and nine koreans. myanmar, hong kong authorities say a woman in isolation has tested negative for mers. alert fortill a red travel in south korea. now we go to myanmar. the nobel chee -- peace prize winner arrived in beijing for a meeting. the five-day visit has no public appearance.
rishaad: chinese shares down. money market rates set to rise. ipos tying up funds next week. a portfolio manager is with us today. great to see you again. long andk about the short. too early to talk about performance. what are you looking at in this part of the world? guest: we are very active in in asia. hong kong as well as foreign inted stocks, particularly the e-commerce space. we continue to be positive on growth for stocks in china. earnings growth is recovering. that is the primary focus in this region at the moment. we did see what is happening with china. a stock surge. seene same time, we have
underperforming what is going on mainland. it has become more divergent. what is going on. guest: there should be some sort of arbitrage. the flowve received from mainland capital. they have traditionally traded at a premium because of the nature of the market. mainland capital will find its way into hong kong through the link and the discounts will begin to close. the problem is the market is dominated by retail investors. does that concern you? gabriel: there has been concern because of retail accounts. weakness and property markets has generated flows into equities. we are very positive on the
cycle. interest rates are coming down. monetary policy is supported. the government's support of of ances as well. the rally in shanghai provides that liquidity. and that capital, to refinance the balance sheets that require that financing. rishaad: what are you invested in in china currently? gabriel: we look to two major sectors. by financials, i mean banks, asset managers. insurance companies. selective property companies. internet and e-commerce trading at a higher pe level than the chinese markets. companies like alibaba reported strong numbers, smaller names as well. financials, hong kong, shares are attractively priced. great dividends and
return and equities for some of these banks. gabriel: we are at the trough of the cycle to rea. at this time, it is difficult to forecast. the eight easing cycle and should in the economy to consumption suggest 2016 will be a good year. rishaad: what about this move? nations to beng included in the emerging markets index. they say, i get to do more housekeeping. how big of a disappointment is that? of course you are long and short. gabriel: we expected an announcement for 2016. it gives investors a long lead to get invested or adapt to the new benchmark.
we have 25% in china. we expect that to increase to 35-45%. for insurers are included. there are some concerns by large investors about liquidity, access, settlement. in these issues need to be to includeor msci these shares in the index. it is returnable such a large cap will be included. last time we talked was march last year, and we were talking about emerging markets. what we were looking at was -- the taper tantrum at that point. now we have concerns about the normalization of monetary policy. it has really hit some countries like indonesia. mentioned'm glad you
the word taper tension. what we are seeing is similar to one year or two years ago as the fed again ending qe. the markets are more vulnerable. they have higher multiples. they require foreign financing. are vulnerable. not last tantrum did long. it was a reaction to tightening by the federal reserve. i think emerging markets are overreacting to the expectation of an increase. increase ofotential 25 or 50 basis points. television, a major bond investor said there might not be an increase at all. there is a question about how strong u.s. road is. certainly no problem on inflation. rishaad: but then they are
supposed to be filtering through , which would create wage inflation. gabriel: we are not seeing inflation in china or the u.s.. for central banks to start hiking or increasing rates might be premature. more important, your comment on the taper tantrum was important. it was an overreaction to read like indonesia do have specific programs -- problems like growth slowing. rishaad: have to take a break. thinking out of the box? find out why this gimmick from pizza hut is getting people talking on social media. ♪
was based on lists not only in the u.s. but all around the world. who better to look at whose comments are better than the actual employees themselves? congratulations to one of the highest rated ceos. of sales force. a link to that list is on twitter, just go to the glass door account. congrats to our ceo tom richards read one of the highest ceos. bestter: they deserve a boss cut. let's talk about pizza. this is from hong kong. a marketing campaign for pizza hut. that can turnbox
into a movie projector for your smart phone. there is a lens committee you put a hole in there and then put your smart phone on there. it will help you project the movie onto the screen. download somely free movies, too. many people think this is a genius idea. i wish they had it in my country. but no plans to expand away from hong kong right now. one person saying, they redefined movie and dinner night. rishaad: will be back. ♪
you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount rishaad: bringing the benchmark rate to 1.5%. through sluggish exports and the mers outbreak. in proving confidence in australia translating to increased hiring. that is the lowest with
australians finding jobs. the aussie dollar surging on those numbers. a greek official has described the latest talks as being quote constructive. saides considered -- merkel was considering for payment if the greeks implemented just one reformed review ultimate toll is to keep greece in the euro area. korea interest rates at a record low of 1.5%. a say the economy has contracted since mers. ok saying?is the b reporter: a dark picture. has been consumption showing some recovery but because of mers, it has contracted.
taking a toll on sales and tourist arrivals as well as highlighting a lot of risks here in the global economy. domestic demand, uncertainties have heightened. more downside risks from weak exports. they will continue to look at the weakening currencies from around the globe. we have talked about the week yen. uan against the yen has risen. they said the export klein has accelerated, according to the bank of korea. they will continue to watch major countries and the monetary policy shift. they are going to watch very closely, as well as capital flows. rising faster than they have seen in recent years. low, very lows
right now. the lowest we have seen since the asian financial crisis. due to the effects of cheap oil. also talking about the greek debt issue. a continuing risk for global growth, as well as emerging slowdowns across the globe. they are going to look at the future policy to ensure economic growth in korea. bank in new zealand also deciding to do something. what happened there? points.25 basis the first cut in four years. the governor talking about inflation quite low. and slow growth in new zealand. we have seen falling milk and oil prices. we have also seen inflation.
really below inflation targets for quite some time. the dairyalk about prices, inflation, four straight years, a number below the target. the signs of the bubble we have seen in the housing market, particularly in auckland. the biggest city, that is where 16% live. lowering their forecast. the globalut economy, the global picture here. we have seen so many central banks cutting interest rates. it has been quite a way. to a guest earlier from jupiter asset management. he said, this was a big concern. guest: the biggest story at the cutst is the interest rate
that have been implemented over the last 12 months. the stimulus that will create is as great -- we haven't seen those sort of cuts since 2009. there is a good region for them doing that. growth and demand are lackluster. growth, low return world. central banks are increasingly worried about the forces of deflation. anz.e: we also heard from they say if you need a lower dollar, you need a cut to bring it back to 2%. beforepect one more cut the end of the year, and governor wheeler said expect more to come. rishaad: we are going to look at what markets are doing at the moment. tailwinds from the wall street session.
is shery. shery: we are seeing a tailwind from wall street and also from the rate cuts. it asian stocks rising for the second day, gaining the most in two months. 1% after thed, up surprise rate cut. the first in four years. the shanghai composite, kind of unchanged. moving between losses and gains all morning. there could be a concern about a tie up in funds. stocks trading here in hong kong. ofs is after the discounts mainland years reached the whitest in six years. the decline for the first time. ang seng up.
despite the comments by the bank of japan governor, sending the yen surging. stocks, upt affect 1.4%. i want to take you through some of the stocks that have moved the most in japan. don quixote -- surging 6.4%. tokio marine up 0.7%. acquisition by a japanese insurer. bridgestone up. talking about more upside. they did cut goodyear. bank -- chiba bank cut
by other analysts. asian shares at their lowest valuations in six years. let's get to jakarta. what is keeping the money away right now? reporter: things are not looking good for southeast asian songs. -- stocks. rate --pect of a higher u.s.ow is to 35 million dollars. analysts have said the valuation of indonesian stocks could be justified with a slower growth outlook. economy is slowing down. not so good earnings are a major
concern. bad news for the stock. just to get perspective, southeast asian markets are the biggest and a fisheries of the stimulus with stocks and thailand, indonesia, and the philippines surging more than 200% in the six years. the currency is badly hit after reaching the weakest level in 17 years. indonesia experienced the slowest economic expansion since 2009. of better returns in north asian stocks. there is a prediction that investors might switch to markets like china as the market
for asian markets is unexciting and blank. you.ad: thank we will turn to the company once referred to as the facebook of china. on the verge of going private. or than a dozen u.s. listed companies considering this. why? the shuffle in the new york listing, i want to show you two different stocks that tell the story about renren. your to date. it looks pretty good. out and to extend that look at what it has done in new york trading. down 71%. that is a ski slope downwards. 83% down from a high. that to a rival,
listed in hong kong. a big social networking stock. 264%. 64% -- renren listing in new york, maybe not the best decision. i have a quote. their business model never worked. rishaad: we hear less and less about it. there is no buzz coming from the company. necessarily except for the company and founder. i know him and have met him in beijing.- he and the ceo, they have made a preliminary nonbinding offer to basically buy out the company. rishaad: there he is. guess: that is at our interview
in 2012. they own a big part of the company. the biggest shareholder is softbank. dollars,offering four about a 22% discount. other companies. rishaad: tell me about some of the other companies. so say they have gotten offers to go private, including ja solar. a lot of these peers in shanghai are doing so much better. i also want to bring up jack ma. let's bring up the quote from jack ma. i woulde another life, keep my complete private. life is tough when you ipo. oh, poor guy. $25 billion ipo. rishaad: quite something.
number of personnel in iraq to 3500. -- victims of the germanwings crash have been returned. asple lined the streets hearses drove past their school. 150 people were killed in the crash last march which investigators blame on the plane's copilot. pope francis has told vladimir putin he should do more to bring peace to ukraine. he kept the pope waiting for more than an hour during a private meeting in the vatican. that aid workers be given access to the ukraine. the russian leader said he was
held up while visiting the world fair happening in milan. helpad: samsung is getting restructuring itself. also trying to fend off a merger challenge. our editor.in they are the white knight, i suppose. kcc is part of the huge family. kcc is that is running actually working on his own. rishaad: what was he trying to do at samsung?
he does not feel it is fair for shareholders. samsunghose that own cmt. he bought a big chunk of it. sorts ofating all noise, saying this deal is unfair. in fact, it is unlawful. rishaad: the thing is, is it? young-sam: that is for the judges and courts. elliott seems filedent that they have two injunctions. a one to stop the whole agm. another about the kcc deal that happened overnight. talk about what is going on in samsung. it is a company in the transition. a company very much -- what is next for them? young-sam: i think they had to
get this transition sorted in the first place. that is why the merger is so important. this merger, the company called samsung cmt is important to their transition process. steaks and other samsung companies. rishaad: the stakes are high. young-sam: this huge company. rishaad: it is so fragmented and seems unstructured as well as. that is one of the criticisms we often hear from investor activist. complain if you
sunanda: the government is setting itself a target of cuts to achieve it. the more they have raised an earlier target of installing 20,000 megawatts of solar energy. and generating 600,000 in wind power. accounts, renewable for 22,000 megawatts. they are set to add more solar than wind for the first time as prime minister modi looks at the suns rays to end energy's shortages. securing funds has always been a challenge of developers.
interest rates are high. there are also challenges in terms of finding the funding for the $200 billion that the government needs. some committees have gone ahead and shown funds can be raised easily including state owned funds. thank you. if you mention robots, you may think of heavy-duty machines made up of motors and the metal. one san francisco startup is taking this in a novel direction. they are delivering robots made of fabric. reporter: brains or braun? that has long been a dividing line in the world of robotics. cutesy ploys designed to connect with humans versus industrial hardware. san francisco startup
is trying something new. a new classrking on of robots which are lighter and safer than anything before. her up order: industrial robots are made of heavy materials. that is why they have been stuck in factory cages. the company makes a robotic arm with no hard skeleton and is made mostly out of fabric found ack straps. >> you can build a sense of touch. a sense of interaction into the robot at a material level. reporter: pound for pound, they are stronger than their mental counterparts. 5-10ical factory robot is times heavier than the load it can lift. this one can already lift more
than its weight. disney gives a sneak preview of a flexible robot future in "big hero 6." its protagonist is a lovable health care robot. >> i will scan you for injuries. character was inspired by a real life prototype. >> if you are going to do stuff like brush teeth or just them, there is no way you can get a big heavy robot up close to someone safely. aymaxter: a robot like is still science fiction but inflatable's are coming soon. it for thist is edition of "trending business."
. mark: i'm mark halperin. john: i'm john heilemann. and with all due respect to bill clinton, he can speak to me whenever he wants. john: happy national ice-tea day. jeb is jousting with the press. president obama is sending 450 more american troops to train the iraqi military. the white house says these are